The popular definition of "recession" may be inappropriate this time. Stock prices made their real all-time high in 2000. While the Dow Industrials index is at a numerical high which exceeds that of the high in 2000, the decline in purchasing power of the dollar since then has, in fact, brought the "real" Dow to a point which is significantly lower than that of 2000. In other words, the market did not really make a new all-time high in October 2007. CandleWave’s investment newsletter points to the fallacy of belief that the market truly made a new high; it did not, in terms of gold, which is real money. History is replete with the declines of empires, which were largely brought about when emperors devalued their currency by reducing the gold content of coins. The Fed has done the same thing with our money, by removing gold as backing for the dollar. A dire end is inevitable.
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